German womenswear maker Biba reaches end of road

German womenswear brand Biba GmbH will cease operations by year end. Insolvency administrator Georg Kreplin announced the decision of the creditors' meeting, according to a report by Immobilien Zeitung.

The decision means that about 480 employees of the Gelsenkirchen, Germany-based, company will lose their jobs. The remaining 130 stores will be closed, including 35 of Biba's own shops. The stores will only remain open for clearance sale until year end. Kreplin blamed the general though environment on the retail market for the failure to revive the company.

"The difficult situation in retail has undermined the restructuring efforts", said Kreplin, adding that the lack of willingness of the employees to accept less wages hasn't made it easier. Biba's employees are mostly covered by a collective labor agreement, he said.

Biba has been founded in 1963 in Duisburg, Germany, and quickly developed into one of the first vertical womenswear companies in Germany. The company focused on a boutique concept with trend-oriented and feminine collections in a medium price segment.